The ultimate tax shelter: Owning your own business

Jeff Schnepper was just telling me that the surest way to reduce your taxes is to convert personal expenditures into allowable deductions. Turn even a hobby into a business and you'll cut your tax bill.

The No. 1 way to reduce your taxes with a smile is to convert your personal expenditures into allowable deductions. Turn yourself into a business owner and cut your taxes.

It’s almost that simple.

Moreover, even if you’re employed full time elsewhere, that doesn’t prevent you from having another vocation on the side. This technique works whether your business is your primary source of income or it’s a sideline.

Your hobby can be a business. That means your hobby could qualify as a business. In the process, you’ll cut your tax bill.

Here’s the best part: Your business doesn’t have to make a profit for your expenses to be deductible. All you have to do is establish a “profit motive.” Under the Internal Revenue Code, a “profit motive” is presumed if you earn any net income in any three out of five business years.

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Well, that was exciting! I think I'll just stretch out here on the keyboard eif4[cw948955j49tp9m oops. 'Bye for now